Indian markets opened 0.5% higher on Tuesday, after the current account deficit narrowed, tracking gains in global markets. At 9.26am, the Sensex gained 0.44% to 38,841.82 points, while the Nifty climbed 0.5% to 11,528.30.

However, trades in late morning deals on Tuesday dragged lower by financial, IT and metal stocks, despite gains in global peers. The S&P BSE Sensex index is at 134 points 38,801.75, the broader NSE Nifty benchmark hit 11,501.35 at 27.30 points from an intraday high of 11,554.20.

Losses in information technology and metal shares dragged the markets lower however gains in energy and select auto stocks arrested the fall. Equities in other Asian markets ticked up as some investors clung to hopes that China and the US could work towards reaching a deal on trade and other issues in the fourth quarter.

Japan’s Nikkei rose 0.6 per cent while MSCI’s broadest index of Asia-Pacific shares outside Japan inched up 0.11 per cent. Chinese markets will be shut for a week from Tuesday to mark 70 years since the founding of the People’s Republic of China. On Monday, the Sensex and Nifty had ended 0.40 per cent and 0.33 per cent lower respectively.

(With input from agencies)